The federal government’s $188-billion infrastructure spending plan continues to lag behind schedule, without adequate public reporting on the massive program, Canada’s auditor general said March 25.
Auditor General Karen Hogan on Thursday released a report on progress of the Investing in Canada Plan, concluding “funds were not being spent as quickly as planned,” and “objectives might not be met” over the 12-year program.
As much as one-fifth of planned spending in the first three years of the IICP, about $9 billion, was delayed, according to the report. In 2019-20, about $3 billion was to later years and 11 government departments failed to spend any money in 2016-17, the report said.
The auditor general also found “incomplete and inconsistent” reporting by federal departments, so Infrastructure Canada was “unable to provide meaningful public reporting on the plan’s overall progress toward its expected results.”
The findings agree with previous reports by the Parliamentary Budget Officer and others, who said the program has failed to meet initial spending targets.
Prime Minister Justin Trudeau first announced plans to increase the infrastructure program during his 2015 election campaign, saying a Liberal government would spend billions on public transit, telecoms, ports, water treatment plants and other critical infrastructure to invigorate Canada’s economy.
Phase 1 includes $14.4 billion over five years, primarily for stimulus in 2017 and 2018. Another $81.2 billion in Phase 2 spending targets the environment, modernizing the economy, and a more “inclusive society”.
The auditor general report warns that due to delays, “there is a risk that these objectives might not be met and Canadians might not benefit fully from the investment” laid out in the IICP.
“Without ongoing monitoring of these delays and their effects, federal partner organizations might have to spend some of the planned amount after the last year of the plan, compromising some of the results expected by 2027–28,” the report said.
Inconsistent reporting was also identified, sometimes failing to include targets for spending alongside the actual pace of spending, making it difficult to determine whether departments are meeting their goals.
“We found that Infrastructure Canada’s reporting provided only a partial picture of progress toward the Investing in Canada Plan’s objectives and expected results,” the report said.
“With no publicly available interim targets or tracking to measure progress, Infrastructure Canada will not be able to demonstrate whether the program is on track to meet its expected results and objectives before 2028,” the report said.
The report also stated the government did not incorporate the United Nations’ Sustainable Development Goals into the IICP, “even though it could play a significant role in helping the government achieve” its emission reductions targets.